POLICY CHANGE// In a landmark decision, the BJP-led Central government scrapped the Planning Commission and is set to replace it with an eightmember thinktank.

While addressing the nation from Red Fort on Independence Day, Prime Minister Narendra Modi announced the dissolution of the 64-year-old Planning Commission to address the current economic challenges and strengthen the federal structure.

The Planning commission had been formed in 1950 through an executive order by India's first Prime Minister Jawaharlal Nehru. For the past 65 years, it has served as a link between the Centre and the states. Modi told PTI, “Sometimes it becomes necessary to repair a house. It costs lot of money. But it does not give us satisfaction. Then we feel it is better to make a new house,” adding, “We need an institution of creating thinking and optimum utilisation of youth capability,” referring to federalism and a call for the public-private partnership (PPP) model.

In place of the Planning Commission, proposed the thinktank will comprise of top economists, social activists and scientists. Of the eight members, four will be permanent, while the rest will be a part of the panel on a rotational basis. Modi had also asked the general public to give its inputs to the government regarding the new institution. An Open Forum has also been set up by the PMO to collect ideas from the people.